The Evolutionary Approach to Industrial Integration

The international economy at the turn of the century is undergoing profound changes, and the penetration and integration of industries is showing people the future development trend of the 21st century more and more clearly. In different industrial fields, industrial integration is evolving in different ways, which will ultimately lead to a high degree of rationalization of the entire industrial structure and the construction of a new system of integrated industries. Freeman (1997), an authority in industrial innovation research, believes that the process of industrial innovation includes stages of technology and skill innovation, product and process innovation, management and market innovation. According to Freeman's research on the stages of industrial innovation, Lu (2001) believes that industrial integration and innovation go through the stages of technological integration, product and business integration, market integration, and finally complete the whole process of industrial integration. And these stages are connected with each other before and after, and may also be synchronized and mutually reinforcing.

There are three main ways of industrial integration:

One is the penetration and integration of high technology. That is, high-tech and its related industries to other industries penetration, integration, and the formation of new industries. Such as biochips, nano-electronics, three-network integration (i.e., the integration of computers, communications and media); information technology industry, as well as agricultural hi-tech, biological and information technology on the transformation of traditional industries (e.g., mechanical biomimicry, opto-electro-mechanical integration, mechatronics), e-commerce, networked financial institutions and so on. Another example is the penetration and integration of information and biotechnology into traditional industries that took place after the 1990s, giving rise to new types of industries such as mechatronics, avionics and bioelectronics. Also such as electronic network technology to the traditional business, transportation industry penetration and produce e-commerce and logistics industry and other new industries; high and new technology to the automobile manufacturing industry will produce the penetration of the new industry of optical-mechanical integration and so on. The penetration of high and new technology into traditional industries has become the key factor to enhance and lead the development of high and new technology industries. The development of high and new technology and industries is conducive to enhancing the development level of traditional industries and accelerating the high technology of traditional industries. It is mainly embodied in: promoting the high value-addedness of traditional industries, promoting the introduction of new varieties and new industries in traditional industries, and promoting the modernization of traditional industrial equipment. According to the analysis, in recent years, the contribution rate of 1T industry to the U.S. economy is more than 35%, and in 1999, IT made the whole U.S. manufacturing labor productivity increased by 6.4%. At present, information technology is an unprecedented breadth and depth of penetration into all aspects of the manufacturing industry, so that the manufacturing products and production processes, and even management has undergone a profound, even revolutionary changes.

The second is the extension of inter-industry integration. That is, through the complementary and extension of inter-industry, realize the integration of inter-industry, often occurs in the high-tech industry chain natural extension of the part of the industry chain. This kind of integration by giving the original industry new additional functions and stronger competitiveness, the formation of new integrated industrial system. This kind of integration is more often manifested in the extension and penetration of service industry to primary industry and secondary industry, such as the related service industry in tertiary industry is accelerating the all-round penetration into the process of pre-production research, mid-production design and post-production information feedback in secondary industry, and the proportion and role of services such as finance, law, management, training, research and development, design, customer service, technological innovation, storage, transportation, wholesaling and advertisement are becoming more and more important and important in secondary industry. The proportion and role of the secondary industry are increasing day by day, and they are fused into a new type of industrial system which is not different from each other. Such as modern agricultural production service system, the proportion of services in industry, industrial tourism, agricultural tourism and so on.

Third is the reorganization and integration within the industry. Reorganization and integration mainly occurs in the industry or the same industry with close links between different industries, refers to the original independent products or services in the same standard components of the bundle or collection of reorganization through the integration process completely into one. The products or services resulting from reorganization-type integration are often new products or services that are different from the original products or services. For example, the planting, breeding, animal husbandry and other sub-industries within the primary industry can be based on the integration of biotechnology, and through the reintegration of the biological chain, new industrial forms such as eco-agriculture can be formed. In today's highly developed information technology, the reorganization and integration is more manifested as the reorganization and integration of the upstream and downstream industries of the industry chain with information technology as the link, and the new products produced after the integration show the development trend of digitization, intelligence and networking, such as the emergence of fuzzy intelligent washing machines and green home appliances is an important result of the reorganization and integration.